Research In Motion (RIM) reported on their second quarter, fiscal year 2009 earnings which on the surface sounded pretty good. The company stated that revenue was up 15% from the previous quarter and an impressive 88% from the same quarter last year. RIM was also able to add an additional 2.6 million new BlackBerry subscribers during the quarter as well.

Some would think that Wall Street would have been impressed, but according to Forbes they were not. That’s because second quarter earnings missed investor expectations by a penny a share. Investors became even more nervous when the company provided a look ahead for the third quarter which was also going to be short of Wall Street expectations. The news sent RIM shares down 27.5% on Friday as shareholders began a sell off.

I will never understand the “quick money” mentality of Wall Street. Here you have a great company making money hand over fist and becase their forecasts are below “expectations” shareholders begin a dump. Um, does any shareholder read the newspaper? The economy is down a bit so forecasts would naturally be down too. It’s not wonder our economy is in trouble with the silliness that occurs on Wall Street.

Reader Comments

Frig

I have to agree with you to a certain extent, but you may have missed the real reasons why the shares tumbled so badly: some analysts believe that the good times are over for RIM. It used to be that RIM was WAY better than anything else out there. Now they are just better. My opinion is that these analysts are also missing another point. The infrastructures built behind the Blackberrys if still and will remain WAY better than anything out there. Especially if you intend to use you BB for business.